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A SUMMER TRAINING REPORT ON MADURAI DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD, MADURAI- 20

Submitted By
V.NIVETHA (2014MBA31)

Under the guidance of


Mrs. L.MEENA, M.B.A., M.Phil.

DEPARTMENT OF MANAGEMENT STUDIES


Fatima College (AUTONOMOUS)
Mary Land, Madurai-625018
(College with Potential for Excellence)
JUNE -2015

FATIMA COLLEGE (AUTONOMOUS)


DEPARTMENT OF MANAGEMENT STUDIES
Mary Land, Madurai - 625018.

BONAFIDE CERTIFICATE

This is to certify that the project work entitled A SUMMER TRAINING


REPORT ON MADURAI DISTRIDT CO-OPERATIVE MILK PRODUCERS UNION
LTD, MADURAI is a bonafide record of work done by NIVETHA.V (2014MBA31)
submitted in partial fulfilment of the requirement for the Degree of Master of Business
Administration, 2014-2016.

Signature of the Faculty

Signature of the Director

PREFACE
As a part of the MBA Curriculum and in order to gain practical Knowledge in the
field of management, we are required to make a report on the functioning of various
departments in an organization. The Basic Objective behind doing this project report is to get
practical knowledge of what we learn inside the classroom In this project report we have
included various practices and policies followed at MADURAI DISTRICT CO-OPERATIVE
MILK PRODUCERS UNION LTD, MADURAI which we were able collect through
observation and interviews .This Project report helped us to gain practical exposure and
enhance our knowledge towards the work environment.

FATIMA COLLEGE (AUTONOMOUS)


DEPARTMENT OF MANAGEMENT STUDIES
Mary Land, Madurai - 625018.

DECLARATION
I hereby declare that A SUMMER TRAINING REPORT ON MADURAI
DISTRIDT CO-OPERATIVE MILK PRODUCERS UNION LTD, MADURAI- 20
submitted as a part of MBA Degree is our original work and no part of this project has been
submitted for the award of any other Degree, Diploma, Fellowship or other similar titles.

Place: Madurai

Signature of the student

Date: 22.06.2015

ACKNOWLEGEMENT

The live project opportunity we had with MADURAI DISTRICT CO-OPERATIVE


MILK PRODUCERS UNION LTD, MADURAI was a great chance for learning and
professional development. We are so grateful for having a chance to meet so many wonderful
people and professionals who led us throughout this period.
I express our deepest gratitude and special thanks to the DEPUTY GENDERAL
MARKETING MANAGER MR. M. SUNDARA PANDIYAN MADURAI DISTRICT
CO-OPERATIVE MILK PRODUCERS UNION LTD, MADURAI- 20 who allowed us to
carry out our project at their esteemed organization.
I take this opportunity to express our deep sense of gratitude to Rev. Dr. FATIMA
MARY, Principal, Fatima College, Madurai for giving us an opportunity to pursue this study.
I wholeheartedly express gratitude to Dr. P. UMA, B.E., M.B.A., Ph.D., Director,
Department of Management Studies for her invaluable guidance, moral support and
Encouragement throughout the course of the project
Our boundless thanks to Assistant Professor, Mrs.L.MEENA M.B.A., M.Phil. Assistant
Professor for their valuable guidance in doing our project at every stage.
I profoundly thank all the faculty members of the department for their support. We owe a
special debt of gratitude to our family and our friends and well-wishers for the motivation, and
support extended to us at every stage of our project work.
I heart fully thank one and all who have contributed directly and indirectly in bringing
this work with the good structure in completion of this project.

TABLE OF CONTENTS

S.No

Index

Page No

1.1

INTRODUCTION

INDUSTRY PROFILE

DEPARTMENTS

29

3.1

HUMAN RESOURCE

30

3.2

PRODUCTION

35

3.3

MARKETING

45

3.4

FINANCE

52

3.5

MIS

59

3.6

PROCURMENT AND INPUT

63

3.7

PURCHASE

68

3.8

STORE

71

3.9

QUALITY CONTROL

73

OBSERVATIONS AND SUGGESTIONS

75

CONCULUSION

77

AAVIN MADURAI DISTRICT CO-OPERATIVE MILK PRODUCERS


UNION LTD.

AAVIN PRODUCTS:

CHAPTRE- I

1.1 INTRODUCTION:
Summer internship study is an exercise for the students who are undergoing
MBA program. The objective of the study is to make the student familiar to the current
industrial scenario. It provides the student with the first hand idea on the general working of
the student has acquired in student curriculum. The exercise is an opportunity for the student to
understand the organizational structure, the major departments, flow of information and
various other functions in an organization

1.2OBJECTIVES OF THE TRAINING:


To learn about the history of the organization
To learn about the working condition of the organization with respect to
departmental functions, authority, responsibility and procedures
To known about problem faced by the organization and the solution.
To gain about the practical knowledge of organizational functions.

CHAPTER- II

2.1 INDUSTRY PROFILE:


A.HISTORY:
The dairy development was established in Tamil Nadu in the year 1958 to oversee
and regulate milk production and commercial distribution in the state. The dairy
development department took over control of the milk co-operatives.it was replaced by
the Tamil Nadu co-operatives milk producers federation limited in the year 1981.on
February 1,1981 the commercial activities of the co-operative were handed over to Tamil
Nadu co-operative milk producers federation limited which sold milk and milk product
under the trade mark Aavin. With many private companies entering the field of dairy the
Tamil Nadu government is giving high priority to improve the performance of the cooperatives. Tamil Nadu is one of the leading states in India in milk production with about
14.5 million litres per day.

B.NATIONAL DAIRY DEVELOPMENT BOARD (NDDB):


Dairy co-operative account for the major share of processed liquid milk marketed
in the country. Milk is processed and marketed by 170 milk producers co-operatives
unions, which federate into 15 state co-operative milk marketing federation. The dairy
development Board programmes and activities seek to strength the functions of dairy cooperative, As producer- owned and controlled organization. NDDB supports the
development of dairy co-operative by providing them financial assistance and technical
expertise, insuring a better future for Indian farmers. Over the year, brands like Amul
(GCMMF), Vijaya (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala),
Gokul (Kolhapur) co-operatives federation include

a) Andhra Pradesh Dairy Development co-operative Federation Ltd,


(APDDCF)
b) Bihar state co-operative Milk Producers federation Ltd., (COMPFED)
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c) Gujarat co-operative Milk Marketing Federation Ltd., (GCMMF)


d) Haryana Dairy Development co-operative Federation (HDDCF)
e) Himachal Pradesh State Milk Producers Federation Ltd., (HPSMPF)
f) Karnataka co- operative Milk Producers Federation Ltd., (KCMPF)
g) Kerala State co- operative Milk Producers Federation Ltd., (KSCMPF)
h) Madhya Pradesh co- operative Milk Producers Federation Ltd., (MPCMPF)
i) Orissa State co- operative Milk Producers Federation Ltd., (OSCMPF)
j) Punjab state co- operative Milk Producers Federation Ltd., (PSCMPF)
k) Rajasthan co- operative Milk Producers Federation Ltd., (RCMPF)
l) Tamil Nadu co- operative Milk Producers Federation Ltd., (TCMPF)
m) West Bengal co- operative Milk Producers Federation Ltd., (WBCMPF)
A. ACHIEVEMENTS OF DAIRY CO-OPERATIVES:
Commitment to help rural help themselves has guided the dairy boards work for more
than thirty years this commitment has been rewarded with achievements made by co- operative
dairies in milk production, employment generation , per capital availability of milk, foreign
exchange saving and increase farmer incomes.

B. REACH:
The dairy co- operative network

Include 170 milk unions


Operates over 285 districts
Covers nearly 10.7 million farmer members.

C. MARKETING:

Dairy co- operative now market in about 200 classes some 550.
During the last decade, the dairy milk supply to each 1000 urban Indian
increased from17.5 to 43.5 litres.

D. MILK PRODUCTION:

MT in 1999-2000 per capital availability of milk presently is 2132 grams

per day, up from 107 grams per day in 1969-1970


Indias 4% annual growth of milk production surpasses the 2% growth in
population. The net increase in availability is around 2% per year.
10

E. INNOVATION:
Bulk vending saving money and environment.
Milk travels as far as 2200 kms to deficits areas, carried by innovation and
road milk tanker.
95% of daily equipment is production in India, saving valuable foreign
exchange.

F. MACRO IMPACT:
The annual value of Indias milk production amounts to Rs.780 billion.
Dairy co- operative generate employment opportunities for some 10.5
million farm families.

2.2 COMPANY PROFILE:


The Madurai district co- operative milk producers union limited is popularly known
as Madurai Aavin. The Madurai Aavin is one of the largest dairies in the southern part of Tamil
Nadu.
Foundation stone laid by Dr.s.Radha Krishnan former president of India on 27th
September, 1963.madurai AAVIN was started during the year 1967 as Madurai milk project. It
was inaugurated by srimathi Indra Gandhi, former prime minister of India.
The dairy is equipped with plant and machinery through UNICEF (United Nations
International Children Emergency Fund) with assistance from the people of New Zealand
through the freedom from hunger campaign committee for the benefit of mothers and children
of India.
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I.

LOCATION:
The Madurai Aavin has 39.42 acres of land and located in K>K Nagar and Anna Nagar in

Madurai Sivagangai highway and nearly to the office of the Madurai district collector.
MADURAI DISTRICT CO OPERATIVE MILK PRODUCERS UNION LIMITED
AAVIN
SATHAMANGALAM
MADURAI -625020.
Indias dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO (World Health
Organization) regulations expected to come into force in coming year all the developed
countries which are among big exported today would have to withdraw the support and
subsidy to their domestic milk products sector. Also India is the lowest cost producer of per
litter of milk in the world at 27 cents, compared with the U>S63 cents and Japans $2.8
dollars. To take advantages of this lowest cost of milk production and increasing production in
the country multinational companies are planning to expand their activities here. Some of these
milk producers have already obtained quality standard certificates from the authorities. This
will help them in marketing their products in foreign countries in processes from.
The urban market for milk products is expected to grow at an accelerated pace of
around 33% per annum around Rs.43, 500 corers by year 2005. This growth is going to come
from the greater emphasis on the processed foods sector and also by increase in the conversion
of milk into milk products. By 2005, the value of Indian dairy product is expected to be
Rs.10, 00,000 million. Presently the marker is valued at around Rs.7, 00,000 million.

II.

BACKGROUND:
India with 134 million cows and 125 million buffaloes has the largest population of

cattle in the world. The cattle population in the country as on October 200 stood at 313 million.

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More than fifty percent of the buffaloes and twenty percent of the cattle in the world are found
in India and most of these are milk buffaloes.
Indian dairy sector contributes the largest share in agriculture gross domestic
products. Presently there are around 70,000 village dairy co operatives across the country.
The co operative societies are federated into 170 district milk producers unions, which is turn
has 22 state co operative dairy federations. Milk production gives employment to more than
72 million dairy farmers. In terms of total production, India is the leading producer of milk in
the world followed by USA. The milk production in 1999 2000 is estimated at 78 million
MT as compared to 774.5 million MT in the previous year. This production is expected to
expected increase to 81 million MT by 2000 2001. Of this total production of 78 million
cows milk constitute 36 million MT while rest is from other cattle.
While world milk production declined by 2 percent in the last three years, according
to FAO estimates, Indian production has increased by 4 percent. The milk production in Indian
accounts for more than 13 percent of the total world output and 57 percent of total Asias
production. The top five milk producing nations in the world are India, USA, Russia, Germany
and France.
Although milk production has grown at a fast pace during the last three decades
(courtesy: operation flood), milk yield per animal is very low. The main reasons for the low
yield are

III.

Lack of use of scientific practices in mulching.


Inadequate availability of fodder in all season.
Unavailability of veterinary health service.

THE INDIAN MARKET:


Milk has been an integral part of Indian food for centuries. The per capital
availability of milk in India has grown from 172 grams per person per day in 1972 to 182
grams in 1992 and 203 grams in 1998 1999.this is expected to increase to 212 grams for
1999 2000.however a large part of the population cannot afford milk, at this per capital
consumption it is below the world average of 285 grams and even less than 220 grams

13

recommended by the Nutritional Advisory Committee of the Indian council of Medical


Research.
There are regional disparities in production and consumption also. The per capital
availability in the north is 278 gm, west 174 gm, south 148 gm and in the east 93 gm per
person per day. This disparity is due to concentration of milk production in some pockets
and high cost of transportation. Also the output of milk in cereal growing areas is much
higher than elsewhere which can be attributed to abundant availability of fodder, crop
residues, etc which have a high food value for milk animals.
In India about 46 percent of the total milk production is consumed in liquid form
and 47 percent is converted into traditional products like cottage butter, ghee, paneer,
khoya, curd, malai, etc. only 7 percent of the milk goes into the production of western
products like milk powder, processed butter and processed cheese. The remaining 54
percent is utilized for conversion to milk products. Among the milk products, manufactured
by the organised sector, some of the prominent once are ghee, butter, cheese, ice cream,
milk powder, malted milk food, condensed milk infants food etc of these ghee alone
account for 85 percentage.
It is estimated that around 20 percent of the total milk produced in the country is
consumed at producer household level and remaining is marketed through various co
operatives, private dairy and vendors. Also of the total produced more than 50 percent is
procured by co operatives and other private dairies.
While for co operatives, from the total milk procurement, 60 percentage is taken
as liquid form and the rest is used for manufacturing processed value added dairy
products ; for the private dairies only 45 percentage milk is marketed in fluid form and the
remaining is processed value added dairy products like ghee, makhan etc.
Still several consumers in urban area prefer to buy loose milk from vendors due to
strong perception that loose milk is fresh. Also the current level of processing and
packaging capacity limits the availability of packaged milk.

14

The preferred dairy animal in India is buffalo unlike the majority of the world
market, which is dominated by cow milk. As high as 98 percentage of milk is produced in
rural India, which caters to 72 percentage of the total population, where as the urban sector
with 28 percentages population consumes 56 percentage of the total milk produced. Even
in urban India, as high as 83 percentage of the consumed milk comes from the unorganised
traditional sector.
Presently only 12 percentage of the milk market is represented by packaged and
branded pasteurized milk, valued at about Rs. 8000 crores. Quality of milk sold by
unorganised sector however the price is inconsistent across the season in local areas. Also
vendors add water and caustic soda, which makes the milk unhygienic.
Indias dairy market is multi layered. Its shaped like a pyramid with the base
made up o f a vast market for low cost milk. The bulk of the demand for milk is among
the poor in urban areas whose individual requirement is small, maybe a glassful for use as
a whitener for their tea and coffee. Nevertheless, it adds up to a sizable volume million of
litres per day.
Presently, barely 778 out of 3,700 cities and towns are served by its milk
distribution network, dispensing hygienically packed wholesome, quality pasteurized milk.
According to one estimate, the packed milk segment would double in the next five years,
giving both strength and volume to the modern sector. The narrow tip at the top is a small
but affluent market for western type milk products.

IV.

GROWING VOLUMES:
The effective milk market is largely confined to urban areas, inhabited by over 25
percent of countrys population. As estimated 50 percent of the total milk produced is
consumed here .By the end of the twentieth century , the urban population is expected to
increase by more than 100 million to touch 364 million in 2000 a growth of about 40
percent. The expected rise in urban population would be a boon to Indian dairying.
Presently, the organised sector both co operative and private and the traditional sector
cater to this market.

15

The consumer access has become easier with the information revolution. The
number of households with television has increased from 23 million in 1989 to 45 million
in 1995. About 34 percent of these household in urban India have access to satellite
television channel.
Two key elements of marketing strategy for 2000 AD are;
Focus on strong brands
Product mix expansion to include UHT milk, cheese, ice creams and
spreads.
The changing marketing trends will see the shift from generic products to the
packaged quasi, regular and premium brands. The national brands will gradually edge out the
regional brands or reduce their presence. The brand image can do wonders to a products
marketing as is evident from the words of perfume princess coco channel: in the factory, we
pack perfume; in the market, we sell hope.

V.

PENETRATION OF THE MILK PRODUCTS:


Western table spreads such as butter, margarine and jams are not very popular in

India. All India penetration of butter or margarine is only 4%. This is also largely represented
by urban areas ,where penetrations is higher at 9%.in rural areas ,butter or margarine have
penetrated in 2.1 % of household only. The use of these products in the large metros is higher
with penetration at 15%
Penetration of cheese is almost nil in rural areas and negligible in urban areas per
capital consumption even among the cheese consuming household as poor as 2.4 kg as
compared to over 20 kg in USA. The lower penetration is due to peculiar food habits, relative
products and also non availability in many parts of the country. Butter, margarine and other
cheese products are mainly manufactured by the organised sector.
16

Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared


to 31.7 % in all urban areas and 21.3 % in all rural areas. The all India penetration of ghee is
24.1 %. In relative tern, penetration of ghee is significantly higher in North and West, which
are milk surplus regions. North accounts for 57 % of ghee consumption and west for 23 %
south and east together account for balance 20 %. Large part ghee is made at home and by
small cottage

industry from milk. The relative share of branded products in this category is

very low at around 1 to 2 %.

17

VI.

MARKET SIZE AND GROWTH:


Market size for milk (sold in loose/packed form) is estimated to be 36mn MT valued

at rs470bn. The market is currently growing at round 4%pa in volume terms. The milk surplus
states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra
Pradesh, Karnataka, and Tamil Nadu. The manufacturing of milk products is concentrated in
these milk surplus states. The top 6 states visa Uttar Pradesh, Punjab, Madhya Pradesh, and
Tamil Nadu, Rajasthan, Gujarat together account for 58% of national production.
Milk production grew by a mere 1% pa between 1947. Since the early 70s, under
operation flood, production growth increased significantly averaging over 5%pa.
About 75% of milk is consumed at the household level which is not part of
commercial dairy industry. Loose milk has a larger market in India as it is perceived to be fresh
by most consumers. In reality however, poses a higher risk of adulteration and contamination.
The production of milk products, i.e. milk products including infant milk food,
condensed milk & cheese stood at 3.07lakh MT in 1999, production of milk powder including
infant milk food has risen to 2.25lakh MT in 1999, whereas that malted food is at 65000 MT.
Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same
year.

AWARDS OF AAVIN:
2005- 2006 - The State level award for productivity award.
2007 - The State level award for best co-operative milk producers union Ltd.
2010 - Aavin has got the best exhibition award.
FUTURE PLANS:
Increasing the milk handling capacity.
Increasing the milk procurement to 3.0 LLPD.

Increasing the Milk handling capacity from 1.5 LLPD to 3.0 LLPD.

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Increasing the Milk sales to 2.0 LLPD.

Modernization of dairy at a cost of Rs.5 cores.

Introduction of Bulk Milk Cooler (BMC) concept at village level at the cost of
3 Cores.

VII.

PRODUCT PROFILE:
India is the largest consumer of milk and milk products. Especially Aavin milk and its

by products are considered as a best quality when compared to the other private milk products.
The following thereby the products manufactured in Aavin with the brand name of
AAVIN

BUTTER:

Plain butter, 500 grams is being manufactured in feeder balancing dairies


and marketed all over the state.

GHEE:
19

Ghee is packed in 500 ml and 1000 ml packing. Aavin ghee is


manufactured and packed in tins, and pet bottles in Madurai, Krishnagiri, erode
and Salem dairies. Ghee in carton is manufactured only in erode dairy.

GHEE (TIN)
15 KG
GHEE (JAR)
5LTR
GHEE (TIN)
1 LTR
GHEE (JAR )
1 LTR
GHEE (CARTAN) 1 LTR
GHEE (TIN)
500 ML
GHEE ( JAR)
500 ML
GHEE (CARTAN) 500 ML
GHEE (JAR)
200ML
GHEE (SACHET) 25 ML
GHEE (JAR)
5KG
GHEE (JAR)
1KG
GHEE (JAR)
500 GM
GHEE (JAR)
200GM

MILK :

20

Aavin is a unique combination of protection, vitamins, minerals, etc,


various types of milk produced by Aavin organisation are:
Toned milk
Standard milk
Premium milk
Full cream milk
TONED MILK :
Toned milk consists of 4.5 % fat and 3.5 % SNF (Solid Not Fat)
fortified with vitamin A, the milk is pasteurized and it is beneficial to patients
and good for kids. The selling of toned milk per 500 ml sachet is Rs.12.00.
STANDARED MILK :
The standard milk consists of 4.5 %fat and 5.0 % SNF which is sold
at Rs.21.00 per sachet of 500 ml.
PREMIUM MILK :
The premium milk consists of 4.5 % fat and 9.0% SNF which is sold
at Rs.22 per sachet of 500 ml.
FULL CREAM MILK :
Full cream milk consists of 6.0 % fat and 9.0 %SNF which is sold at
Rs.23 per sachet of 1000 ml.

FLAVOURED MILK:

AAVIN flavoured milk is manufactured in bottles and tetra pack. It is in 5


flavours (200 ml)
Strawberry
Pista
Cardamom
Chocolate
Pineapple
AAVIN CURD :
21

Aavin curd is superior in quality and hygienically manufactured in Madurai


co- operative milk producers union limited, packed in heat sealed cups. It is
available in all the leading super markets and Aavin parlours and franchise
retail outlets. Content is 200 ml.

MILK POWDER :
Aavin manufacture and market ISI quality milk powder in 500 grams
carton and 1 kg poly pack. It is manufactured in all our product dairies viz
Erode, Salem, Krishnagiri and Madurai and marketed throughout the state.
Carton 500gms
Poly bag 1 kg
Bulk bag 25 kg
MILK KHOA :
Aavin milk Beda is king of all sweets. It is dearer to the people of
Chennai. It is available in small packing like 50 Gms and 100 Gms packets and
also in 500 Gms and 1 kg bowl.
BUTTER MILK :

22

Aavin is now manufacturing and marketing spicy butter milk throughout


the city. It is being sold at Rs. 2.00 economic type and 11.00 premium type per
200 ml pockets through all parlours. FROs and retailers.

MILK BEDA :

Milk Beda is one type of sweet which is prepared by heating milk until
all water in milk is evaporated and 20% of sugar is added and chilled then it
goes for packing.

23

2.2.1 ORGANISATION STRUCTURE:


The Aavin has three types of structure, namely
1. STATE LEVEL FEDERATION:
The state level federation is named as Tamil Nadu Co-operative Milk Producer
federation, which framed policies, draft procedures and even determine the price for all the
products in the State of Tamil Nadu.
2. DISTRICT LEVEL FEDERATION:
The district level union is name as Madurai District Co-operative Milk
Producer Union Ltd receives milk from societies which are chilled, processed and
distributed to the public through tanker and milk booth outlets

3. VILLAGE LEVEL SOCIETY:

24

The village society is called as the Milk Procedure Cooperative Society,


which produces milk from the farmers of several villages and transports the same to
district level Madurai Union.

MAIN FUNCTIONS OF THE UNION:


Collection of milk from the societies and paying remuneration price to the
societies.
Processing the purchased milk at dairy and produced many by products.
Union to society functions.
Collection milk throughout the year without any restriction. Offering fair prices
for better quality.

AWARDS:
Aavin has got the best exhibition award for the year 210
National productivity council of India gave productivity awarded for the year
2005 -2006 to MDCMPU Ltd in the year 2008
Madurai Aavin has got the state level best co-operative milk producers union Ltd,
award in the year 2007.

25

2.2.2 ORGANIZATION STRUCTURE CHART:


Special officer/
chairman

General Manager

Asst. General
mngr
1. Mngr(DC)
2. Mngr(DB)
3. Mngr(QC)
Lab Asst,
Factory

Deputy General
Mngr
Milk
Procurement &
input

Team Leader

Deputy
General
Manager

Asst. General
Mngr
1. Process
2. Egr
26
3. Transport

Asst. General
Manager

Marketing
Manager

Asst. General
Manager

Deputy
Manager
1. Admin
2. Industry

Asst. General
Manager

Deputy
Manager
1. Finance
2. Pay Bill

Asst. Manager
Deputy Manager
Marketing

Mngr (Dairy)
Mngr(Store)
Mngr(CC)

Executive

Executive

Executive
1. Charge
Manager
2. Machine
Operator

Q.C QUALITY CONTROL


DC DAIRY CHEMIST
BB DAIRY BACKGIOLOGIST

From the above chart the general manager is a centralized


at the
top level
CC authority
CHILLING
CENTER
under the general manager there are four deputy managers they are deputy manager of
finance, deputy manager of administration, deputy manager of process, deputy manager of
marketing. Under each deputy manager there are two assistant deputy managers for each
department, under each assistant deputy manager there are four managers for each
department. This is about the structure of Aavin organization.

27

CHAPTER- III
3. DEPARTMENTS IN AAVIN:

1. Human resource department


2. Production department
3. Marketing department
4. Finance department
5. Procurement and Input department
6. Management Information System
7. Purchase department
8. Store department
9. Quality control department
28

3.1 HUMAN RESOURSES DEPARTMENT:

29

Human resource management (HRM or simply HR) is a function in


organizations designed to maximize employee performance in service of an employer's
strategic objectives.
HR is primarily concerned with the management of people within organizations,
focusing on policies and systems. HR departments and units in organizations typically
undertake a number of activities, including employee recruitment, training

and

development, performance appraisal, and rewarding (e.g., managing pay and benefit
systems).

DEFINITION:
Human Resource Management (HRM) is the function within an organization that
focuses on recruitment of, management of, and providing direction for the people who work in
the organization. HRM can also be performed by line managers.
FUNCTIONS OF THE HR DEPARTMENT OF AAVIN:
Take action for the protection of welfare of the workers
Take final decisions regarding the workers.
Decides the workers annual leave promotion, transfers, and bonus and increment

etc.
It will take some disciplinary actions to maintain the discipline among the workers.
Aavin suppliers free milk cars to the workers.
Prepare agenda for the meetings.
Supply free milk cards to the workers.
Fixes the day-to-day activities of the dairy

ACTIVITIES OF THE HR DEPARTMENT OF AAVIN:

Formulation of the policies and procedures regarding the workers.


Development of HR plan.
Recruitment
Selection
Salary Administration
Training and Development of workers.
D- Performance Appraisal.

A) HUMAN RESOURCE MANAGEMENT:


30

Aavin Company provides the following policies to its employees.


a)
b)
c)
d)

Loans
PF (provident fund)
Travel allowances
Medical allowances

PF

M edic al al low ance s

HR POL ICI ES

LO AN

TRA VELALL OWAC ES

B) RECRUITMENT:
Usual recruitment process is being followed by the company. Recruitment
process in Aavin Company is only through government order. In this department will
appoint new employees below the common category candidates through employment
exchange by following usual recruitment procedure regulated by government.

C) TRAINING:
In 1985, the union established a training centre with the main objective of
imparting training. They give training to the primary co-operative societies about the milk
31

procurement. The management committee members are also training on bow to manage
their societies. They give lot of training to the employees who are all in the procurement
division. But now-a-days there is no off the job training. Only on the job training in this
training also own without any induction program conducted.

D) FACTORY WORKING TIMING:


The working hours of the company are arranged in three shifts a day.
First shift from 6.00am to 2.00pm
Second shift from 2.00pm to 10.00pm
Third shift from 10.00pm to 6.00am

E) OFFICE WORKING TIMING:


Administrative employees covered their working hour from 10.00am to
5.45pm and providing lunch time from 1.30pm to 2.00pm. Administration comes
functioning weekly five days (Monday to Friday).

F) EMPLOYEE WELFARE MEASURES:


Aavin follows many acts for the welfare of the employees. Aavin company
follows the measures of the welfare of the employees according to the factories act 1945.
The following are the welfare measures of the employees.

1. CANTEEN:
The company provides canteen facilities, travel allowances, medical allowances.
In Aavin, canteen runs by subsidiary to the employees. Meals, Tiffins and tea are supplied to
the employees at subsidized rate by the union.

2. MEDICAL ALLOWANCES:
32

Under medical allowances, rs.125 is given to each employee per month.

3. WORKERS COMPENSATION:
The worker compensation is given to the workers for any accident as per workers
compensation act 1923.

4. FREE SUPPLY OF MILK:


All the managers and employees of the union are given 500ml of milk per day on
free of cost.

5. OTHER PROCESS:
No Performance appraisal of the employees.
Wage increment is there for every year once to each and every employee based
on the employee behaviour. If there are any complaints or punishment on

employees they will cancel the increment.


If an employee gets the 10 increment of 10years the employee will promote to

selection grade
If an employee gets the 20 increment of 20years the employee will promote to
promotion grade or special grade.
Like this only promotion will get.

G) LEAVE ELIGIBILITY:
Leave are given to the following basis;
Annual leave with wage at the rate of 1/20 for actual working days of the
previous year.
Normally 15 days are credited.
Medical leave at the rate of 12 days per year subject to maximum of 60 days.

33

3.2 PRODUCTION DEPARTMENT:

Production Management refers to the application of management principles to the


production function in a factory. In other words, production management involves application
of planning, organizing, directing and controlling the production process.

DEFINITIONS:
In the words of Mr, E.L. Breech: Production Management is the process of effective
planning and regulating the operations of that section of an enterprise which is responsible for
the actual transformation of materials into finished products.
The objective should be to produce goods at least cost and to the minimum satisfaction of
the buyer. To meet the objective the role of production in an enterprise is most important. The
production department includes input wing, milk processing process and maintenance
department, quality control department, stores wing and transport wing.
In the production department there are various sections are available they are listed below

34

1. Reception section
2. Lab section
3. Chilling section
4. Butter section
5. Milk powder section
6. Milk Beda section
7. Ghee section
8. Deep freeze section
9. Flavoured section
10. Curd section

1. RECEPTION SECTION:
Under this reception section the milk is collected from various societies in and around
Madurai districts nearly 80-90 societies. The collected milk will be tested in the reception
section to find whether it is good or decayed.

If the milk is spoiled it will be returned back to the milk holder. If the milk is good then the fat
content will be tested the fat content in the milk should be four degree Celsius if it is less than
four degree Celsius again the milk will be returned.

35

2. LAB SECTION:

The next section is lab section in the lab section a sample of milk will be sent the fat
and water in the milk will be tested in that lab section the fat content should be 4 - 4.2 degree
Celsius if it is less than or more than four to four point two degree Celsius the milk will be
returned to the customer.

36

3. CHILLING SECTION:

The next section is chilling in the chilling section the tested milk will be chilled
and stored in a container then it will be heated at 40,60,70,80Degree Celsius and then
gradually. The Heated milk will be chilled at 80,70,60,40 degrees Celsius.

4. BUTTER SECTION:

Butter section in the butter section to produce butter the skimmed milk will be used, there will
be a plant called separator it separate the milk into skimmed and non skimmed milk then the
skimmed milk will be sent to produce butter and the non skimmed milk will be sent to produce a
milk powder. In a butter section there will be a plant called butter churn , it look like a big container
in that container the milk will be rotated nearly forty five minutes and then the butter will be
obtained.

37

5. GHEE SECTION:

In the ghee section the butter will be heater in a big container nearly one hour
at 90 degree Celsius. Then it will be will be sent for the packing section and stored in a
Gordon for sale.

6. MILK BEDA SECTION:

In this milk Beda section the milk Beda is prepared manually ten litters of milk,
one kilogram of sugar and one kilogram of cream are heated initially at 90 degree Celsius and
then heated at 70 degree Celsius nearly one hour. Then it will be chilled and sent for the
packing section for sale.
38

7. FLAVOURED MILK SECTION:

The next section is flavoured section in this section the heated milk will be
filled in a bottle and the flavoured is mixed and then it will be placed in a respective plant
for 45 minutes and the milk will be Chilled and sent for sale. There are flavours like

Chocolate
Almond
Strawberry
Mango
Pine apple
Vanilla

39

8. PACKING SECTION:

In the packing section there are separate plant will be available for each and
every variety of product , a plant will produce nearly 72 output per minute for one hour it
produce 1200 output.

9. CURD SECTION:
Aavin curd is superior in quality and hygienically manufactured in Dairy
department, packed in heat sealed cups. It is available in all the leading super markets and
aavin parlours and Franchise retail outlets.

3.2.1 PLANTS AND THEIR MECHANISMS:


40

PLANTS AND THEIR MECHANISMS


HTST

SEPERATOR

BUTTER CHURN

STORAGEN TANK
PACKING ZONE

41

3.2.2 PRODUCTION PROCESS CHART:

SOCITIES / CHILLING
CENTER

RAW MILK/
CHILLED MILK

SURPLUS MILK

CHILLING

MILK SEPERATION

PROCESSING /
STANDARDIZATION

CREAM

STORING

BUTTER

SKIM
MILK

GHEE

PACKING
STORING

STORING
PACKING

MARKET

42

POWDER

3.2.3 PRODUCTION LAYOUT:

43

3.3 MARKETING DEPARTMENT:

Marketing management is the organizational discipline which focuses on the practical


application of marketing orientation, techniques and methods inside enterprises and
organization and on the management of a firm's marketing resources and activities.
The application, tracking and review of a company are marketing resources and activities.
The scope of a business' marketing management depends on the size of the business and
the industry in which the business operates. Effective marketing management will use a
company's resources to increase its customer base, improve customer opinions of the
company's products and services, and increase the company's perceived value.

MARKETING:
Milk Co-Operative Producers Union Ltd market their product through dealers and
vendors and they do not give any advertisement for their marketing because of governmental
issues.

44

OBJECTIVES OF AAVIN:
The main objective of the organization is to give good remunerative
price to

the milk producing farmers of the Madurai and Theni

District
To satisfy the customers by providing milk is hygienic and standard milk.
To supply good quality milk to the consumers of Madurai and Theni
city at a reasonable price.
Assured, round the year procurement of milk from the farmer
members of this Union.

FUNCTIONS OF MARKETING DEPARTMRNT:


Analyze the sales report periodically and income with lots of plans to increase the

sales.
Allocate the depots in proper place.
Investigate and allocate the depots and parlours.
Arranging vehicles to cover local areas.
Responsibility regarding sales of milk and its by products.
Solve the customer grievances.
Convince the petty shops, grocery shops and departmental stores to form them as

retailers, wholesalers and free retail outlets.


Convince the institution to buy of milk at concession rate.

INDENT SECTION:
Getting information from all zonal offices through disk regarding the quality of
milk needed for distribution.
Sending the details regarding the quality of milk required by category wise to the
production establishment.
Issuing gate-pass to the incoming and outgoing loaded vehicles.
Maintaining an account that deals with indent quality and sales quality of milk
including the special order milk.
Supplying the milk according to their routes.

ZONAL OFFICE:
There are five zonal offices in Madurai District and one zonal office in Theni District
for marketing activities. They are,
45

Bibikulam zone
Palanganatham
Central zone
Aarapayam
Thirumangalam zone
Theni zone

FUNCTIONS OF ZONAL OFFICE:

Collecting cash from concessionaires and retailers according to the indent.


Card sales throughout the month in different dates regarding the customers.
Cash remittance in bank and maintenance of accounts.
Supervising the depots under their control.
Doorsteps activities of card sales have been done area wise in the zone twice in

the month.
Stop sales of the cards in the government organization.
Solving the problems regarding the concessionaires.

MARKETING MIX:

Product
Price
Place
Promotion

PRODUCT:
Aavin produces milk and the milk products in the company itself. There are four
varieties of milk produced in Aavin.

VARIETIES OF MILK:
Standardized milk
46

Premium milk
Toned milk
Full cream milk

BY PRODUCTS:
The surplus milk is separate into full cream milk and skimmed milk.
The full cream milk is converted into butter and flavoured milk.
The skim milk is converted into powder.

PRICE:
The price of the products is fixed based on fats and proteins content of the milk,
weight and quality of the milk and also on the basis of the value added quality. Fixation
of price is done by the central Government and the price is fixed according to the
demand and product cost basis.

CARD SALES:
Advance money is paid for the products at 50paisa reduction form the price.
Milk cards are sold to consumers against the payment of cost of milk for a month in
advance. Rs.1.50 Per litre is given as discount for card holders.
Monthly card scheme is available for Standardized Milk, Premium
Milk and Toned Milk.

SPECIAL ORDERS:
1. Special orders are booked in advance for special occasions like marriages,
Festivals etc.
2. Door delivery in time is ensured irrespective of the quantity ordered.
3. We charge of Rs.0.50/Litre extra for special order.

47

PROMOTION:
SALES PROMOTION:
The sales promotion carried out in shop painting, banners and press
advertisement.
AVERTISEMENT:
Advertisement is done through banners and Retail shops. There is no media
advertisement because of governmental issues.

PLACE:
CHANNELS OF DISTRIBUTION:
Aavin has both direct and indirect channel of distribution. They distribute their
products through wholesalers, retailers and customers.

MANUFACTUR
ER

RETAILER

CONSUMERS

TARGET SEGMENTATION:
Aavin segmented the market in following ways.

COW MILK:
In this cow milk is content of fat is 3.5% and SNF content is 8.5% and it also
contains other proteins. This type of milk is more suitable for aged person. Now the cow
milk is supplied all over the area.
STANDARDIZED MILK:
In this cow milk is content of fat is 3.5% and SNF content is 8.5%. This type of is
more suitable for the children and even it is beneficial to the patients and the infants.
48

FULL CREAM MILK:


This is high fat content milk. Its fat content is 6% and SNF content is 9%.
AAVIN GOLD MILK:
In this milk content of the fat is 5% and SNF is 9% this type of milk good for health.

POSITIONING STRATEGY:
It is based on the,
Competitors
Price
Quality
COMPETITORS:
Aavin has better quality at responsible price set by the government compared to its
competitors like HUTSON and AROKYA.
PRICE:
Aavin product price is fixed based on fat, protein content of milk, weight and quality.
QUALITY:
Aavin products are fresh and pure without any adulteration.

MARKET POTENTIAL:
The Madurai district co-operative milk producers union limited purchase
250000liters of fluid milk from the societies per day and sales 180000liters per day, the
remaining 70000liters are used for plant production.
The supply of 18000liters per day is subdivided into night supply and day supply.
Night supply: 150000liters
Day supply: 30liters.
49

3.2.3.1 HIERARCHY OF MARKETING:


GENERAL MANAGER

DEPUTY GENERAL
MANAGER

MARKETING MANAGER

5 ZONAL OFFICERS

\
CENTRAL

ARAPALAYAM

ANNA
NAGAR

CASHIER

SUPERVISOR

3.4 FINANCE DEPARTMENT:

50

PALANGANATHAM

BB KULAM

Financial management refers to the efficient and effective management of


money (funds) in such a manner as to accomplish the objectives of the organization. It is the
specialized function directly associated with the top management. The significance of this
function is not seen in the 'Line' but also in the capacity of 'Staff' in overall of a company. It
has been defined differently by different experts in the field.
It includes how to raise the capital, how to allocate it i.e. capital budgeting. Not
only about long term budgeting but also how to allocate the short term resources like current
liabilities. It also deals with the dividend policies of the share holders.

DEFINITION:
Financial management may be defined as that area or set of administrative
function in an organization which relate with arrangement of cash and credit so that
organization may have the means to carry out its objective as satisfactorily as possible . - By
Howard & Opton.

Finance department of Madurai district co operative milk producers union deals


with the methods of raising of funds through direct revenue from sales, loans banks, and from
other agencies like NDDB an assessment of the financial statement helps us to understand the
overall progress of a concern strength or weakness.
51

The Madurai direct co operative milk producers union has raised its funds only
by the loan amount given by the commercial banks and government financial institutions.

INCOME ACCOUNTS:
It prepares the annual income and expenditure report and monthly profit and loss
account will be submitted to the administration section. It maintains account for the future
reference.

3.4.1 HIERARCHY OF FINANCE DEPARTMENT:

MARKETIN
G PAYMENT
SECTION

MARKETING
ACCOUNT
SECTION

SALARY
SECTION

PAYMENT
SECTION

CASH
SECTION

PRE- AUDIT
SECTION

Madurai district co operative milk producers union purchase 2, 75,000litres of milk


per day from the societys .The cost for one litre milk is Rs.28.10 days once the payment will
be given to the producers.

52

FINAL
ACCOUNT
SECTION

Madurai district co operative milk producers union totally pays 20 cores per month.
Total sale is 1, 65,000 litre per day.
COMMISSION:
For other milk - Rs.1.60 per litre
(Cow milk, standardised milk, gold milk)
For FCM - Rs.2.00 per litre
(Full cream milk)
Approximately, Madurai district co operative milk producers union pays 70, 00,000
per month to agents and the salary to its employees 1, 50, 00,000.
PROFIT:
Madurai district co operative milk producers union yields 1, 75, 00,000 profit per
month. For audit profit is 15.08 cores.

FUNDS REQUIRMEENTS:
The funds requirements are in two types funds requirements for income and funds
requirements for expenditure.
a) FUNDS REQUIREMENTS FOR INCOME:
Sales of milk
Sales of products
Conversion charges for others
Union products
b) FUNDS REQUIREMENTS FOR EXPENDITURE:
Milk collection cost
Staff cost
Administration overhead
Selling and Distribution

AUDITORS:
In this section the administration department appoints two auditors. One is company
auditors another one is statutory auditors.
a) COMPANY AUDITORS:
53

They look after the preparation of the balance sheet, rate also periodic day-to-day
activity.
b) STATUTORY AUDITORS:
The regional deputy of audit board and overall director audit control, they audit the
works prepare and check all accounts of the union and prepare a final audit memorandum and
submit it to the controlling officer. They submit this audit at the association meeting.

3.4.2 ACCOUNT DIVISION:


Madurai Aavin co operative has totally seven departments or sections in account
division. They are following.

Milk payment section


Marketing account section
Salary section
Payment section
Cash section
Pre audit
Final account section

1. MILK PAYMENT SECTION:


When milk comes from societies to the organisation, the organisation starts to
estimate how much milk does come from the societies. A formula is used to find out one litre
of milk,
1 litre = weight / 1.08
After finding out the litre of milk RTGS is being prepared by milk payment section.
Meaning for RTGS is Real Time Gross Settlement. Milk payment section prepares cheque
and they send to the bank where the producers have an account. The bank transferred the
money to the society members account.
54

ADVANTAGES:
This is the easiest way.
It reduces the time.

2. MARKETING ACCOUNT SECTION:


Marketing account section of Madurai Aavins account division deals with the
following works
What type of milk they purchase
Agent commission calculation
How much litres of milk they sells per day

3. SALARY SECTION:
Salary section of Madurai Aavins Accounts division plays an important role in
the organisation. Based on the attendance of each and every employee, salary section
prepares salary statement and they put salary to their account.

4. PAYMENT SECTION:
Payment section pays the amount to what they buy as small things such as
milk film, acid, alkaline. Nearly 40, 00,000 to 45, 00,000 will be paid by the payment
section for the milk films.
USER SECTIONS:
User sections certifies the products and prepare GRN.GRN means goods
received notes which has the following things.
Product name
Specification
Amount
55

Manufacturing company name


If advance paid the remaining amount would pay to producer.

5. CASH SECTION:
Three tier systems have been followed.

At least 25 members should be there in a society. To join as a member in a society,


people should pay Rs. 100 Cash section collects the,

Co operative society membership money


Tender form money
Deposit money

6. PRE AUDIT:
Entries are in numbers (code).pre audit is prepared before sending the cheques
to the bank. If any mistakes made in the entries they would cleared in pre audit.

56

7. FINAL ACCOUNT SECTION:


Final section prepares the following statement

Monthly profit and loss account


Monthly costing
Yearly profit and loss account
Balance sheet

3.5 MANAGEMENT INFORMATION SYSTEM:

Management information system is a computer based information system that


collect, store and manipulate the information from various department and it helps the
management whenever the management needs it.

DEFINITION:
57

Management information system is a computer based information system that


collect, store and manipulate the information from various department and it helps the
management whenever the management needs it.
In Aavin Management Information System is a separate department. Here they use
MIS for two purposes one is procurement purpose another one is sales purpose.

3.5.1 STRUCTURE OF MIS DEPARTMENT:

PROCUREMENT PURPOSE:
It is used to prepare bills and maintain their salary statement. Mainly MIS is used
for fixing the milk rate based on the FAT and SNF. They are having some rate charts in their
system using the software name MACS software consultancy. Its help to fix the rate. MIS
gives information to producers through message weakly twice or two days once. These are all
procurement purpose.
SALES PURPOSE:
In sales purpose there are two types of commission analyser depot commission
and parlour commission. Here they use software named MIS analyser to analyse assigning
the information for sending information to producers.

MILK PROCUREMENT PRICE CHART 1 COW MILK RATE PER LITRE

58

UNION TO SOCIETY

FAT /SNF

7.7

7.8

7.9

8.0

8.1

8.2

%
3.0
3.1
3.2
3.3
3.4
3.5

1914
19.32
19.51
19.69
19.88
20.06

19.39
19.57
19.76
19.94
20..13
20.32

19.64
19.82
20.01
20.19
20.38
20.56

20.14
20.32
20.51
20.69
20.88
21.06

20.32
20.51
20.69
20.88
21.06
21.24

20.51
20.69
20.88
21.06
21.24
21.43

MILK PROCUREMENT PRICE CHART 2 COW MILK RATE PER LITRE

SOCIETY TO MEMBERS

FAT /SNF

7.7

7.8

7.9

8.0

8.1

8.2

%
3.0
3.1
3.2
3.3
3.4
3.5

18.64
18.82
19.01
19.19
19.38
19.56

18.89
19.07
19.26
19.44
19.63
19.81

19.14
19.32
19.51
19.69
19.88
20.06

19.64
19.82
20.01
20.19
20.38
20.56

19.82
20.01
20.19
20.38
20.56
20.74

20.19
20.01
20.19
20.38
20.56
20.74

MILK PROCUREMENT PRICE CHART 3 BUFFALO MILK RATE PER LITRE

59

UNION TO SOCIETY

FAT /SNF

8.3

8.4

8.5

8.6

8.7

8.8

%
6.0
6.1
6.2
6.3
6.4
6.5

21.35
21.71
22.07
22.43
22.79
23.15

21.38
21.74
22.10
22.46
22.82
23.18

21.41
21.77
22.13
22.49
22.85
23.21

21.44
21.80
22.15
22.52
22.88
23.24

21.47
21.83
22.19
22.55
22.91
23.27

21.50
21.86
22.22
22.58
22.94
23.30

The processes which take places in MIS are the following:

Milk bills.
Pay bills.
Marketing credit bills.
Accounting statement.
Society milk receipts.

FUNCTIONS OF MIS:
The computer section should prepare the income and expenditure account in the

system
MIS can also collect the statistical data.
They salary bills, pay bills and other bills cannot be prepared by the department.
Monthly improvement report is prepared and sends to the meeting.
Action is being taken to sponsor the staff of the computer section to update the

knowledge in new software.


Proposal has been sent to the commissioner for milk production and dairy
department.

60

3.6 PROCUREMENT AND INPUT DEPARTMENT:

The major activity of this wing is to procure milk from the farmer members
of the Districts and also to provide necessary technical input facility to them. The
procurement is carried out by forming village level Milk Producers Cooperative Societies.
Procurement is the acquisition of goods, services or works from an external source. It is
favourable that the goods, services or works are appropriate and that they are procured at the
best possible cost to meet the needs of the acquirer in terms of quality and quantity, time, and
location.

61

In Aavin procurement department maintained their raw milk collected from


societies. The milk cost will send through the bank. Here the officer and v doctors will check
the cow regularly whose cow are give the milk to the society.

3.2.6.1 STRUCTURE OF PROCUREMENT DEPARMENT:

The first process of dairy production is procurement of raw materials. The raw milk is
the vital ingredient for dairy processing. The raw milk is needed for processing in Aavin milk
plant is collected from the formers of Madurai and Theni districts. This is purchased from the
collection centres which are in Thirumangalam, Usilampatti and Vadipatti in Madurai district
and Antipatti in Theni district.
62

The collected raw milk is chilled in the chilling centre before its despatched to
Aavin Milk Plant. The payment to the suppliers of raw milk will be given to the quantity
of the milk. This is done after making a test.

PROCUREMENT DATA: AS ON OCTOBER, 2008


Madurai District.
1.

Total No. of functioning MPCS :

2.

Total Members enrolled

3.

No.ofMPCSunderveterinary
Animal health coverage

4. No of women MPCS

369

38865

274

190

76

100

318

192

14556

16461

5. No. of MPCS under AI Coverage :


6. No. of Women members

484

Theni Dt.

37180

THE MILK PROCUREMENT IS CARRIED OUT THROUGH:


Formation of village level co operative society.
Convincing farmers to pour milk to co operative to fetch higher price.
Year round milk collection from the societies door step by milk collection
routes.
Educating the farmer is on animal management, infertility and feeding
management.
Maintaining the book of accounts at the society level
63

The procurement price is calculated and given to the farmers based on the
chemical quality of milk .that is solid non fat.
Payments to the producers are affected once in 10 days the union.
Monthly payment nearly 9 cores to rural villages.

FUNCTIONS OF P &I DEPARTMENT:


Collect milk from the milk producers in Madurai and Theni districts.
To supervise milk collection and society activities.
To control diverse and organisation of new society, identification of new village
for procurement and input of veterinary doctors who gives veterinary coverage to
all societies.

TECHNICAL INPUT AND SERVICES OFFERED:


1. Free veterinary healthcare to animals of the producer members of this
organization. This service is provided by operating 8 Nos. of Mobile
veterinary routes covering 420 Societies in the District. The veterinarians
visit the societies at a scheduled time, every week and treat the animals in
the village itself.
2. Free De worming of all calves.
3. Emergency veterinary service on call at a reasonable charge of Rs 25.00
per visit even to remote village.
4. Door step Artificial Insemination service in 503 villages.
5. Supply of cattle feed at a reasonable price.
6. Bull production program by selecting good quality cows and inseminating
with a proven bull and the expected male calf is selected for semen
production. The farmer is given good price for his male calf.
7. Progeny testing scheme.
8. Arranging of loans from nationalized banks to purchase animals.

64

TRAINING CENTRE:
The Union is running a training centre to train the society level employees as well as
the farmers. The training programs conducted are
1.

AI & FA Training

- 30 days

2.

UDC Secretary Training

- 30 days

3.

Milk Tester Training

- 5 days

4.

UDC Refresher Training

- 5 days

5.

BMC Training

- 5 days

6.

AI Refresher Training

- 5 days

7.

MACom Training

- 5 days

8.

CMP Training

- 3 days (DCS employees)

9.

CMP Training

- 2 days (Members)

10.

Farmers Orientation Program

- 1 day

11.

Dairy Animal Management Training

65

- 2 days

3.7 PURCHASE DEPARTMENT:

The company raw material is milk and the raw material is available in the local areas.
The company purchase raw material directly and through agents. They purchase the milk two
types one is through tanker milk another one is can milk. At the time of purchasing, the raw
milk is tested and measured.

FUNCTIONS OF THE PURCHASE DEPARTMENT:


To purchase materials necessary for milk and by product production and sale.
To identify the requirement of the union.
66

Selecting a proper source of supply.


PURCHASE PROCESS:
The purchase section prepares a file containing all the purchase details and sends
it to the general manager to get permission.
After receiving permission from the general manager, the section sends inquiry
to all suppliers and gets quotations from the suppliers.
The section prepares comparative statement and the supplier with a lowest price

is selected.
The selection sends a sanction orders to the general manager and get signature.
The section sends the purchase order to the selected supplier.
The supplier sends the material to the unions store.
The store section handover the bill to the accounts section.
The accounts section issues to bill to the supplier.

3.7.1 PURCHASE DEPATMENT STRUCTURE:

TANKER MILK:

67

The tanker milk means purchasing the milk in bulk from theni. These tanker milk
is purchasing through agents. The tanker ,ilk is purchased once in a day.

CAN MILK:

The can milk means purchasing the milk from local areas like KK nagar, Vadipatti,
Usilampatti, etc; in this the milk is purchased through society. The can milk is purchased
twice a day.

68

3.8 STORE DEPARTMENT:


In Aavin store department to store the products mainly here butter is store for
maximum one year in -5 degree temperature. Milk powder; milk Beda, butter, ghee,
flavoured milk all products have to use the store. In store they maintain the day-to-day
products from production to sales. There are three stores in Aavi n i.e.
Main store- Contain consumable appliances.
Engineering stores- Items kept includes mechanical spare parts that are mainly
bought in Bombay and Gujarat.
Transport store- Items kept includes lubricants oil etc.

The following materials are kept in main store. Butter packing materials (BPM)

100grms Butter Packing Materials


200grms BPM
50grms BPM
1kg Milk PM
5kg Ghee PM
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500ml PM
Toned Milk PM
Full Cream PM
Gastric Soda Plant cleaning materials
Lab Medicines
Veterinary Medicines.

Some of the book maintained in this department included,


Day book for recording daily records.
Goods received notes for recording goods that are receiving in the store.

FUNCTIONS OF STORE DEPATMENTS:


To provide adequate and proper storage and preservation of various items.
To assist in verification and provide supporting information for effective
purchase.
To maintain the dairy coupons.
To maintain purchase and sale contractors tankers and milk tankers starting and
incoming regulation

3.8.1 HIERACHY OF STORE DEPARTMENT:

GENERAL MANAGER

DEPUTY GENERAL
MANAGER

STOCK OFFICE
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SYSTEM STORE
OFFICE

ASSISTANT

3.9 QUALITY CONTROL DEPARTMENT:

The quality control laboratory in Madurai dairy is equipped to analyze and evaluate
the quality of raw milk. The quality is checked at every stage of milk production, processing,
storage and marketing. The quality control department improves the milk and milk products
quality and prevents milk from adulteration. Indian standards institution, agamas and trade
give the approval after checking.

FUNCTIONS OF QUALITY CONTROL:


To control the adulteration in milk
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To provide milk quality to the customer


To supervise the quality of milk and its by products
To exercise a check over the quality of milk that comes from the dairy
section.

QUALITY CHECKING PROCESS:


A) GERBER TEST:
Put 10 ml of sulphuric acid into the butyrometer
Add a sample of 10.75 ml of milk
Add 1 ml of amyl alcohol
Centrifuge foe 3 min
The Gerber test is made for checking the quality of fat in milk, the fat value vary from
3.0 % to 4.3 % in normal cow milk.
B) ELECRONIC MILK TESTER:
After measuring the quality of fat in milk the solution contained in the
butyrometer is placed into the electronic milk tester which separates the fat and the SNF
(solid Not Fat) such as protein, lactose, vitamins and minerals and indicates the quality of
each SSSSNF from the sample taken.
From the above results the quality of milk from each society is registered into the
computer system for the future reference during the by product production process.

3.9.1 QUALITY CONTROL DEPARTMENT STRUCTURE:

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CHAPTER IV
OBSERVATIONS

During the training period, trainees observed various functions of all the
departments.
Proper attendance was maintained. Proper leave and exit procedure are in

existence.
Employees are paid salaries promptly on time.
Dairy department is the backbone of the company.
There is no coordination between workers in the organisation.
The workers were late to the work place.
The organisation does not have career development program and there is no

formal performance appraisal system.


The working environment was not clean.
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SUGGESTIONS

Madurai district co operative milk producers union limited can make its
environment clean and tidy..
People who are working in the office can maintain discipline.
To avoid the conflict between the employees the organisation can be given
counselling.
The organisation can give awards to the employee who comes earlier to the office.

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CHAPTER V
CONCLUSION

MADURAI DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD,


MADURAI motive is to Service to the public which required milk reasonable price and
good quality. Aavin is one of the most required milk companies in Madurai city and in Tamil
Nadu states as a whole. Aavin provided a great opportunity to learn different aspects of
working of an organisation in a practical way. Aavin enhanced my knowledge in the fields of
dairy manufacturing and marketing.

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